The Asia/Pacific PC Market Contracted For the First Time In 2012

The Asia Pacific (excluding Japan) PC market declined 2% in full year 2012 to reach 121 million units recording a full year contraction for the first time according to preliminary analysis by IDC.

Ongoing weakness in the global economy finally caught up with the region,
affecting demand across both consumer and commercial segments. Mature markets in
the region were impacted by distractions from smartphones and tablets as well,
further hurting PC shipments there as a result. In 4Q12 specifically, the market
came in 4% below IDC's initial forecasts with a 5% year-on-year decline, as
channels across the region remained distracted with clearing out existing
Windows 7 inventory before bringing in new Windows 8 stocks.

"Initiatives such as Ultrabooks and Windows 8 haven't reinvigorated the
PC market as much as the industry had hoped," said Avinash K. Sundaram,
Senior Analyst for Client Devices Research at IDC. "In light of this
softness, IDC expects growth to remain muted in the upcoming years. However, we
also must not forget that this is still a more than USD60 billion market in the
Asia/Pacific (excluding Japan) region alone."

Lenovo remained in the lead in 2012 as it continued to expand beyond China in
the region, making particularly strong strides in India. Internal
re-organization activities kept HP busy for much of the year, though its recent
efforts at regaining partner confidence helped the vendor arrest some of the
decline. Dell, meanwhile, made a strategic choice to shift its focus towards
higher valued products. ASUS persisted with its strategy of targeting lower tier
cities in emerging markets with entry-level SKUs to steadily gain ground across
the region.

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